New Direct-to-Employer Contracting Solution Launches

Direct-to-Employer, or DTE, offers a delivery program for self-funded health insurance which enables health systems, providers, employers and the insured to all share the benefits and savings.

Direct-to-Employer offers delivery program for Self-Funded Insurance

(Newswire.net -- April 24, 2018) Tampa, FL -- Health Systems and Healthcare Providers are searching for solutions to increase market share in their community and this is certainly a key to a comprehensive growth plan. This new private-labeled Direct-to-Employer Program links healthcare providers directly with community employers.

Direct-to-Employer, or DTE, offers a delivery program for self-funded health insurance which enables health systems, providers, employers and the insured to all share the benefits and savings. Through direct reinsurance for catastrophic losses and employer funding, costs can be reduced versus traditional insurance company self-funded plans.

A large majority of employers fall within the 10-99 size segment and would be ideal candidates for a self-funded direct to employer solution. Employers would be presented the opportunity to purchase a self-funded program with specific and aggregate coverage through the DTE program.

This new direct-to-employer solution is a “turn-key” ERISA self-funded health plan with appropriate levels of stop loss insurance, outsourced administration of claims and administrative services, and a data warehouse with appropriate analytics for population health management and deploying successful population health optimization strategies.

There are 4 main reasons why the Direct-to-Employer program is a strategically important addition to any healthcare provider and the larger community it serves:

It levels the playing field with the large payors and allows the development and control over your own network

It provides local employers with a solution they have been asking for - the opportunity to break from the insurers

It provides the Healthcare System and its providers with a robust source of new fees and revenues which includes a large share of the savings

It increases the Provider’s ability to achieve the Triple Aim – improve the patient experience, improve the health of the population and reduce the per capita cost of healthcare.

With the Direct-to-Employer (DTE) program, Providers can create a direct contracting solution that allows employers with as few as 10 employee lives to buy major medical insurance and other ancillary services directly from the Healthcare Provider on a self-funded platform. In Pennsylvania for example, 63.7% (Source: EBRI 2016) of all employers are partially or fully self-funded and the trend is moving upward due to negative impacts of community rating and secular trend with fully-insured products being sold. The direct-to-employer platform is created in partnership with Key Benefit Administrators (KBA), Accountable Care Solutions Group, LLC (ACSG), and CSuite Solutions LLC (CSUITE).

The dynamic value the Direct-to-Employer Solution delivers to Healthcare Systems/Providers:

CONTROL – the Provider will have control of plan brand (private label), design, steerage factors, referral protocols, authorizations, and direct input on complex case management, and complete access to all medical service data by every member in the plan.

SPEED TO MARKET & LOW COST OF ENTRY – If a Provider were to capitalize the necessary infrastructure to support a direct-to-employer program and DTE contracting solution on its own, it would cost more than $2 million and take up to 1½ years to deploy. By working through the partnership of ACSG/KBA/CSUITE, a fully deployed and ready-to-market DTE program can take 6 months or less to implement and cost less than $400K.

PROPRIETARY – Because the product is unique to each Provider, a competitive system cannot participate without the Provider’s permission.

FAVORABLE FINANCIALS - Increase in top-line and incremental revenues versus a passive PPO arrangement. Additional revenues under gain-sharing alone can contribute 10% to 12% to top line over any other plan with self-funded employers.

STEERAGE - The plan design incentivizes the member to access the Provider’s network for the least out-of-pocket (OOP) costs.

ATTRIBUTION AND REFERRAL MANAGEMENT - Program requires assignment of a Provider-based PCP at enrollment and requires referrals be authorized for other providers not in the primary network – allowing for control of utilization and attribution of patients.

GAIN SHARING – The Provider can share in 50% savings of an employer plan. A great means of engaging, recruiting, and retaining physicians and nursing resources.

AT THE TABLE - Ability to sit at the table with employers, employer coalitions, and chambers who are paying the bills. Establish the Provider’s brand and control the messaging without interference from payers and vendors.

INCREASED FLEXIBILITY – Employer(s) and the Provider control the plan, not the insurer

PLAN DESIGN OPTIONS - Elimination of state mandated benefits

DECREASED TAX LIABILITY - Elimination of most state premium tax

A LA CARTE ADMINISTRATION - Administration tailored to the employer’s needs including core competency in complex healthcare administration – 40+ years of self-funded medical experience as well as on staff legal counsel specializing in ERISA law, employer law, and healthcare reform law

Jointly operated by Key Benefit Administrators (KBA) and CSuite Solutions, DTE is managed and administered by some of the top leadership in healthcare systems and third-party administrators (TPAs) in the world. CSuite Solutions alone brings over 200 years’ worth of combined experience through its partners, who have had great success in clinical integration, network development, provider-based insurance, revenue cycle optimization, volume to value transitions and accountable care organizations. One of the largest non-insurance TPAs in the U.S., KBA has a track record of 30 years when it comes to reducing costs associated with healthcare.

For more information on how to bring the DTE solution to your health system, contact Stewart Schaffer, Managing Partner, CSuite Solutions at (813) 540-7750.

CSuite Solutions is an executive advisory firm serving the healthcare industry. Its partners consist of former health care industry CEOs and other senior level executives. We specialize in assisting health care systems and other p... moreCSuite Solutions is an executive advisory firm serving the healthcare industry. Its partners consist of former health care industry CEOs and other senior level executives. We specialize in assisting health care systems and other providers address the challenges that they are facing as a result of reduced reimbursement rates and other consequences of the Affordable care Act (ACA). It was recently formed to attract the most senior and accomplished healthcare industry executives in their respective fields. They have spent most of their long careers transforming hospitals and major health care systems, physician groups and other providers into efficient and financially robust operating organizations. These C-Level executives are now dedicating their talents and connections to helping their peers successfully navigate through these transformative times. less